Retirement is often viewed as a time to relax and enjoy the fruits of your labor, but for many retirees, managing monthly expenses on a fixed income can be a challenge. However, if you’re looking to boost your monthly income by an extra $740, you’re not alone—and it’s possible!
Whether you’re seeking a little extra cushion for your retirement savings or just want to make life more comfortable, here are some practical ways you can earn that extra $740 each month.
1. Consider Working Part-Time
One of the most straightforward ways to earn an extra income in retirement is through part-time employment. The beauty of this option is that it offers flexibility, and you can choose a job that suits your interests and schedule. Here are a few part-time job ideas for retirees:
- Retail Jobs: Many stores are hiring for part-time positions, and these can offer flexible hours. You might even enjoy discounts on products.
- Tutoring: If you have expertise in a specific subject, consider tutoring students either online or in person. Tutoring rates often range from $20 to $50 per hour, so working a few hours a week could help you meet your goal of an extra $740 per month.
- Freelance Work: Websites like Upwork, Fiverr, and Freelancer offer freelance gigs in a variety of fields, including writing, graphic design, and virtual assistance. With the right skills, you could easily land a few projects per month to earn extra cash.
- Delivery or Rideshare: If you’re physically able and enjoy driving, working for services like Uber, Lyft, or DoorDash can be a flexible way to earn additional money. Many retirees have found success working a few hours a week on their own schedule.
If you’re able to commit to 15-20 hours per week at a rate of $18-$25 per hour, you could earn up to $740 each month.
2. Rent Out a Room or Property
If you have extra space in your home, renting it out can be a lucrative way to earn money in retirement. Many retirees use platforms like Airbnb or Vrbo to rent out spare rooms or vacation homes, especially if you live in a popular tourist area.
Here’s how you could make this work:
- Renting a Room: If you have a guest room or a finished basement, renting out a room on a short-term basis can be a good source of income. Depending on your location, you could charge anywhere from $30 to $100+ per night, which could easily add up to $740 or more each month.
- Renting a Vacation Property: If you own a second property or a vacation home, listing it as a short-term rental could provide a steady stream of income. Popular vacation areas often have high rental rates, so you could potentially exceed your $740 target with just a few bookings.
By renting out part of your home, you can gain financial independence and continue living in your own space while bringing in extra income.
3. Monetize a Hobby or Skill
Retirement is the perfect time to explore your passions and hobbies. If you have a particular skill or craft, why not turn it into an income stream? Here are some ideas:
- Sell Handmade Items: If you’re good at crafting, knitting, woodworking, or creating artwork, you can sell your creations on platforms like Etsy or at local craft fairs. Many retirees use their creative skills to generate extra income while doing something they love.
- Photography: If you have a knack for photography, you can offer local services for events like family portraits, weddings, or senior photos. You can also sell your photos to stock image websites such as Shutterstock or Adobe Stock.
- Writing or Blogging: If you have a talent for writing, you could create a blog, contribute to freelance writing sites, or even write a book. Blogging, for example, can eventually generate passive income through affiliate marketing and ad revenue.
- Teaching Music or Art: If you’re musically inclined or have expertise in the arts, consider offering private lessons to students of all ages. Charging $30–$60 per hour for music or art lessons can quickly add up to meet your $740 goal.
By monetizing your hobbies, you not only earn extra income but also keep your mind engaged and your retirement fulfilling.
4. Invest in Dividends
For retirees looking for a more passive approach to earning extra money, dividend investing might be a good fit. Many companies pay dividends to shareholders, and these regular payments can add up over time.
- Dividend Stocks: By investing in dividend-paying stocks, you could receive regular cash payments from the companies in which you invest. On average, these payments range from 1-5% of your investment annually, so with an investment of $100,000 in dividend stocks, you could earn between $1,000 and $5,000 per year.
- Dividend ETFs: Exchange-traded funds (ETFs) are another way to gain exposure to dividend-paying stocks. Many retirees prefer dividend-focused ETFs, which hold a variety of stocks in one portfolio, providing more diversification.
The key is to research and find stable companies with a track record of paying consistent dividends. While this strategy requires an upfront investment, it can generate a steady source of income that supplements your monthly budget.
5. Claim Government Benefits and Assistance Programs
New Year, New Rules: Major Changes Coming for US Retirees, Income in January
In addition to personal earnings, retirees may be eligible for government benefits or assistance programs that can help boost their income. Some programs to look into include:
- Social Security Benefits: If you haven’t yet claimed your Social Security benefits, doing so could significantly increase your monthly income. The amount you receive depends on your earnings history and the age at which you start receiving benefits. For those who have already started claiming, exploring the possibility of increasing your benefit through delayed retirement credits could help.
- Supplemental Security Income (SSI): For low-income retirees, SSI provides additional income to help cover basic living expenses. Check if you qualify for this program to receive extra support.
- State Assistance Programs: Some states offer supplemental programs for seniors, including property tax relief, energy assistance, or even direct financial support. Be sure to check with your local government to find out what programs are available in your area.
These government programs can help bridge the gap between your Social Security benefits and living expenses, providing the financial boost you need.
The importance of when you start collecting retirement benefits
It’s an important fact. Sometimes, with a small adjustment, it’s possible to increase your monthly benefit by hundreds of dollars. We’re talking about a difference of up to $740 per month in some cases. Sounds interesting, right? Let’s take a closer look.
This is key. Social Security doesn’t pay everyone the same. What you receive depends on several factors, but one of the most important is the age at which you decide to start collecting. It might seem like a small decision, but it’s not.
If you start collecting at 62, which is the minimum age, you’ll receive less money per month. Why? Because the system applies a permanent reduction to your payments for each month you start before your full retirement age (FRA). That age, by the way, is between 66 and 67, depending on when you were born.
On the other hand, if you wait until age 70 to start collecting, your payments will be significantly higher. This increase can be between 24% and 32%, which translates into a considerable difference in your monthly income.
A practical example
Retirees Aged 73 and 5 Months Must Take the Required Minimum Distributions by the IRS Deadline
To put it into numbers, someone who starts collecting at 62 might receive around $1,298 per month, according to 2023 data. But if that same person waits until age 70, their payments would rise to about $2,038 monthly. That difference, $740 more per month, is no small amount.
Now, not everyone can afford to wait. That’s a fact. But even delaying your claim by a year or two can make a big difference in what you’ll receive throughout your retirement.
Is delaying always a good idea?
Delaying your benefits is a strategy that works for many people, but not for everyone. It all depends on your circumstances. For example, if you have enough savings or are in good health, it might make sense to wait to maximize your payments.
However, if you need the money sooner or prefer to enjoy your retirement years while you’re more active, starting to collect earlier might be the most logical choice.
A 2022 study by the National Bureau of Economic Research found that, from a purely financial perspective, nearly all older adults (99.4%, to be exact) could significantly increase their total income by delaying their benefits. But this type of analysis doesn’t take into account your personal goals, which are equally important.
A little-known trick to increase your benefits
There are additional strategies that can help you get more out of Social Security. For example, not many people know that there are techniques that could add up to $22,924 annually to your income. The key is to plan ahead and understand how the system works to make the most of it.
Deciding when to start collecting Social Security is a complex decision with no universally applicable solution. The important thing is to understand your options and evaluate what works best in your situation. Delaying benefits can be a way to increase your payments, but sometimes, starting earlier is the decision that allows you to enjoy your retirement more.
Conclusion
Earning an extra $740 per month in retirement is possible with the right strategies. Whether you take up part-time work, rent out a room, monetize your hobbies, invest in dividends, or tap into available benefits, there are many ways to supplement your income and make your retirement more financially comfortable.
By staying proactive and exploring different income streams, you can enjoy your retirement years with less financial stress and more opportunities to do the things you love. It’s never too late to start planning your financial future, so take action today and make the most of your retirement income!